Office of Development

Gifts of Cash
Cash gifts make up the majority of gifts to the Murray State University Foundation. Gifts of cash are the easiest and most direct way to give to MSU and are fully deductible if you itemize on your federal income tax return.

Making a cash contribution helps Murray State immediately fulfill its objectives. Gifts may be used to support an existing program or fund, or to establish a new endowment or scholarship. Gifts of cash can also be used to perpetuate educational excellence when used to establish a planned gift through the MSU Foundation

* You may deduct up to 50% of your annual adjusted gross income for cash gifts. Any deduction in excess of that can be carried over and used within the next five years.

Many donors choose to make their gifts in the form of stocks, bonds, and other properties that have increased in value. That is because gifts of assets that have been held for at least one year and one day can allow you to save taxes twice. *

Gifts of Securities
Not only are gifts of appreciated securities deductible from income tax at their full value, but donors of securities are also free from the capital gains taxes that would otherwise be due if the assets were sold.

* Gifts of appreciated securities are deductible in amounts up to 30 percent of adjusted gross income. As with gifts of cash, any excess deduction may be carried over and used for up to five additional years.

Collections of art, manuscripts, rare books, and antiques are all examples of gifts of personal property that have been donated to Murray State University . Donors of personal property have the satisfaction of knowing that their cherished collections are available to further the education of future generations of Murray State students.

Gifts of Personal Property
There are also tax benefits to making a gift of this sort. Gifts of personal property made during your lifetime entitles you to an income tax deduction and reduces taxes on your estate. If made through your will, your estate will benefit from estate tax savings.

The Internal Revenue Service recognizes two types of personal property gifts. There are gifts that are related to the purposes of the University and those that are considered to be of "unrelated use." For full tax benefits, the gift must be related to the educational purposes of the University. For example, a gift of a painting that will become part of the University's permanent collection is considered to be a "related use" gift.

In contrast, a gift of personal property that will be sold by the University for the purpose of using the proceeds, is considered to be of "unrelated use." In this case, the donor is limited to a deduction of his cost basis of the property.

In some cases, gifts of personal property can be used to establish a Charitable Gift Annuity through the Murray State University Foundation, allowing you to receive income for life from your contribution to MSU.

The staff of the Office of Development is available to discuss these and other issues with you. The staff can advise you of ways to maximize your gift to benefit you and Murray State .

Gifts of homes, farms, and rental properties have been used in various ways to enhance educational opportunities at Murray State University . In some cases, gifts of real estate have been made in consideration of planned gift that give the donors income for life.

Gifts of Real Estate
Making an outright gift of real estate will result in an immediate tax deduction for the full value of the property. You may deduct up to 30 percent of your adjusted gross income in the year the gift is made. Any excess deduction may be carried over for a period of five years.

If you are considering making a gift of real estate, a staff member can work with you to assure that it will enhance the educational mission of Murray State . Marketability of the property is a key consideration.

Gifts of real estate have been used in various ways at Murray State . One donor provided property close to the University that has been used to provide much needed parking areas for students. Another donation of real estate resulted in a Charitable Remainder Unitrust for the donor and his spouse who will receive income for their lifetimes. Houses donated to the University have been used for University housing or offices, or sold with the proceeds of the sales

You may own a house or farm that you would like to donate at a later date to Murray State University . Through a Life Estate arrangement, you can enjoy tax considerations now while still maintaining total control of your property.

Bargain Sale Gifts
Occasionally an individual has personal property or real estate he would like to donate to Murray State , but has need of some financial benefit from the property. Through a Bargain Sale, a purchase of property from the University at less than full market value, you can satisfy your desire to benefit the University and your need for cash from the property.

In a Bargain Sale arrangement, the difference between the property's fair market value and the price paid by the University is considered a gift. For income tax purposes, the gift portion of the transaction is deductible.

Bargain Sales are attractive options for many individuals. You should consult your financial adviser and the University if you think you would be interested in exploring a gift of this nature.